The United States Department of Agriculture (USDA) announced today that dairy farmers and cooperatives have voted to support proposed order changes in every federal milk marketing order. 

The changes made to federal orders, including new make allowances in Class 3 and 4 milk price formulas and dropping barrel cheddar prices from the value of commodity cheese in the Class 3 price formula, will take effect June 1, 2025. One change, new milk composition factors, will take effect December 1, 2025, according to the Wisconsin Cheese Makers Association.

 "Therefore, all milk marketed on or after the month of June 1, 2025, will reflect the amendments to surveyed commodity products, Class III and Class IV formula factors, base Class I Skim Milk Price, and Class I differentials in both the advanced prices and pricing factors released before the start of the month and the class and component prices announced after the close of the month. Advanced prices and pricing factors for the month of June 2025 will be announced on May 21, 2025, and class and component pricing for June 2025 will be announced on July 2, 2025," the final rule states.

The positive producer vote in each federal order means that the final decisions made by USDA on November 12, 2024 are adopted and will take effect on June 1, including the “Final Decision” make allowances noted below:

 “The reforms included in today’s USDA announcement include important updates to elements of the FMMO system, including much-needed changes to ‘make allowances.’ While the USDA process did not address all issues within the supply chain, particularly for Class I and organic milk processors, IDFA is optimistic that this process has laid the groundwork for a unified and forward-looking dairy industry and we are grateful to our members who provided testimony and engaged in this process over the past 2-plus years," said Michael Dykes, president and CEO of IDFA.

NMPF thanked USDA and the dozens of farmers and cooperative leaders who successfully steered Federal Milk Marketing Order modernization to a successful conclusion.
 

“Dairy farmers and cooperatives have done what they do best – lead their industry for the benefit of all,” said Gregg Doud, president and CEO of NMPF. “This final plan will provide a firmer footing and fairer milk pricing, which will help the dairy industry thrive for years to come. We appreciate the monumental contributions across government and the dairy industry that made this happen. The industry, and all dairy consumers, owe all of you a debt of gratitude.”

“We are encouraged by this positive outcome that the vitality and importance of Federal Orders remains,” Edge Dairy Farmer Cooperative President Heidi Fischer said during a press conference at Dairy Strong. “And while there is always more to do to keep the orders relevant and purposeful, at this juncture we are encouraged that the FMMO will continue to provide the market stability needed for both producers and processors.”